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Emerging nations plan their own world bank, IMF

WASHINGTON (AP) - Fed up with U.S. dominance of the global financial system, five emerging market powers this week will launch their own versions of the World Bank and the International Monetary Fund.

Brazil, Russia, India, China and South Africa -the so-called BRICS countries - are seeking "alternatives to the existing world order," said Harold Trinkunas, director of the Latin America Initiative at the Brookings Institution.

At a summit Tuesday through Thursday in Brazil, the five countries will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

The five countries will invest equally in the lender, tentatively called the New Development Bank. Other countries may join later.

The BRICS powers are still jousting over the location of the bank's headquarters - Shanghai, Moscow, New Delhi or Johannesburg. The headquarters skirmish is part of a larger struggle to keep China, the world's second-biggest economy, from dominating the new bank the way the United States has dominated the World Bank.

The bloc comprises countries with vastly different economies, foreign policy aims and political systems - from India's raucous democracy to China's one-party state.

Whatever their differences, the BRICS countries have a shared desire for a bigger voice in global economic policy. Each has had painful experiences with Western financial dominance: They've contended with economic sanctions imposed by Western powers. Or they've been forced to make painful budget cuts and meet other strict conditions to qualify for emergency IMF loans.

Now, says Thomas Wright, a fellow at Brookings' Project on International Order and Strategy, "they want a safety net if they fall out with the West."

Developing countries have also been frustrated because the U.S. Congress has refused to approve legislation providing extra money to help the IMF make more loans to countries in trouble. The money is part of a broader reform program that would give China and other developing countries more voting power at the IMF.

Uri Dadush, an economist with the Carnegie Endowment for International Peace, sees no problem with the BRICS countries' development bank and financial crisis fund. But he worries that the five countries' decision to go outside of existing institutions provides more evidence of the "fracturing of the postwar (economic) system that gave us so much peace and prosperity. The system has not been able to adapt to the new reality, the rise of the new powers."

The IMF and the World Bank seem to be taking the new challengers in stride.

"All initiatives that seek to strengthen the network of multilateral lending institutions and increase the available financing for development and infrastructure are welcome," said IMF spokeswoman Conny Lotze. "What is important is that any new institutions complement the existing ones."

Answering a question about the BRICS development bank earlier this month, World Bank President Jim Kim said: "We welcome any new organizations ... We think that the need for new investments in infrastructure is massive, and we think that we can work very well and cooperatively with any of these new banks once they become a reality."

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supermolar July 14 2014 at 8:32 PM

our sanctions on Russia have hastened this development. Other countries will do an end run around the United States. We are not the power we once were-Obama has succeeded in making the USA "nothing special".

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34 replies
aspman07 July 14 2014 at 9:40 PM

Remember this? Please Pass on Without Comment


Yes, he told us in advance what he planned to do. Few were listening.

The following is a narrative taken from a 2008 Sunday morning televised "Meet The Press'.From Sunday's 07 Sept. 2008 11 : 48 : 04 EST, Televised "Meet the Press"
THE THEN Senator Obama was asked about his stance on the American Flag. General Bill Gann' USAF (ret.) asked Obama to explain WHY he doesn't follow protocol when the National Anthem is played.
The General stated to Obama that according to the United States Code, Title 36, Chapter 10, Sec. 171...
During rendition of the national anthem, when the flag is displayed, all present (except those in uniform) are expected to stand at attention facing the flag with the right hand over the heart. Or, at the very least, "Stand and Face It".

Senator Obama replied :
"As I've said about the flag pin, I don't want to be perceived as taking sides." "There are a lot of people in the world to whom the American flag is a symbol of oppression..." "The anthem itself conveys a war-like message. You know, the bombs bursting in air and all that sort of thing."

Obama continued : "The National Anthem should be 'swapped' for something less parochial and less bellicose. I like the song 'I'd Like To Teach the World To Sing'. If that were our anthem, then, I might salute it. In my opinion, we should consider reinventing our National Anthem as well as 'redesign' our Flag to better offer our enemies hope and love. It's my intention, if elected, to disarm America to the level of acceptance to our Middle East Brethren. If we, as a Nation of warring people, conduct ourselves like the nations of Islam, where peace prevails - - - perhaps a state or period of mutual accord could exist between our governments ...."

When I Become President, I will seek a pact of agreement to end hostilities between those who have been at war or in a state of enmity, and a freedom from disquieting oppressive thoughts. We as a Nation, have placed upon the nations of Islam, an unfair injustice which is WHY my wife disrespects the Flag and she and I have attended several flag burning ceremonies in the past".

"Of course now, I have found myself about to become The President of the United States and I have put my hatred aside. I will use my power to bring CHANGE to this Nation, and offer the people a new path.My wife and I look forward to becoming our Country's First black Family. Indeed,CHANGE is about to overwhelm the United States of America "

Yes, you read it right. I for one, am speechless!!!

Dale Lindsborg , Washington Post


Flag Reply +68 rate up
24 replies
ERIC July 14 2014 at 8:22 PM

To all the naive idiots who think our economy is improving just wait till the U.S. dollar loses it's status as the world's reserve currency. Then this illusionary sugar-coated topping you've all been deceived by will come crashing down and you will finally face the true reality.

Considering how more and more countries are getting tired of doing business with us (as this article is good example) I'm afraid the time for this to happen is very soon. Like within next few years.

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10 replies
William July 14 2014 at 9:13 PM

Its all to kill this country to into a second world nation. Get ready to be broke. Thanks demlibs.

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3 replies
davmusgro July 14 2014 at 8:56 PM

the world is tired of America and its huge spending and bigger debt . America is making the entire financial world in a very bad place. Obama you dropped another ball here and you put our country in big trouble. .

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11 replies
R July 14 2014 at 9:47 PM

More erosion of America's financial and economic power, thanks to one person. Barack Hussein Obama.

Obama's probably a Mideast plant. He's been aiding the Mideast Terrorists. He freed 5 top Taliban Terrorists for a U.S. Army Deserter.

Though there is proof of Bergdahl being a deserter - it will never be released. The fix is in. A conspiracy at the highest level.

I could go on and on as could the majority of Americans but I'll stop right there, except to say . . .

How much longer will this man be allowed to remain in office.

Those who support him do so because they believe that's what they should do but they are wrong.

They should be loyal to their country, not to a man who is destroying our country.

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7 replies
wbearl July 14 2014 at 9:24 PM

Congratulations Obama, you wanted to fundamentally change the US and you have succeeded. It too 200 years to get where we were in the world, and it took you 6 years to undo it. Well it was nice while it lasted. To bad future generations won't be able to enjoy it.

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8 replies
carpenter1 July 14 2014 at 9:15 PM

republican congress- hurting America as usuall!!

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37 replies
vulturesmotto July 14 2014 at 9:09 PM

People have no idea how this will effect the US economy. Is this the goal of the administration?? If so, mission accomplished. Get ready for it to get even worse. The only reason the stock market is high is because of the 85 billion per month pumped into it for the last few years. The US owes 17 trillion and counting.

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2 replies
calderasf vulturesmotto July 14 2014 at 9:16 PM

our debt is smaller to output them many first world countries

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2 replies
supersarge1963 calderasf July 15 2014 at 1:32 AM

Won't be for long if the libbies don't figure out that you have to eventually pay the bills tomorrow for all the wasteful spending they are doing today.

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bob calderasf July 15 2014 at 6:11 AM

two wrongs don't make a right! You are blinded to the downhill slike he has put the U.S. in by a utopian philosophy that our founders knew to be the path to disaster. Remember that you were advised of that when your life is in shambles ... along with a lot of folks who don't deserve this!

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bertnernie229 vulturesmotto July 15 2014 at 11:00 AM

One way this will adversely affect the US economy is at this time ALL crude oil must be purchased with US dollars no matter what country you are from. This alone will destroy the Dollar there by destroying your ability to purchase items at the Cheap price you have become accustomed to. Get ready. This is going to be a wild ride. It will hurt and you will not like it one little bit. I see food lines and abandoned homes and automobiles. Children left at the door steps of local churches because mom and dad cannot afford to feed them. Think not? Look a Greece. See what they had to deal with. It's coming your way. You better arm yourself and learn how to grow your own food.

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patriot1too July 15 2014 at 10:53 AM

Obama is Americas worst president and has lowered the bar on everything from the military to marriage, dumbing down our youth with politicaly correct nonsense while selling out our great nation to the communist, radical islamic muslums and the gender confused fringe groups.

Flag Reply +5 rate up
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